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2 creating the oakland municipal ultra high-speed communications and internet service OAKLAND SHOULD TAKE THE LEAD IN THE BAY AREA in supplying low-cost, ultra high-speed Internet access to its residents. Cities like Chattanooga, Tennessee and Bristol, Virginia have demonstrated that a municipality can supply faster, lower-cost Internet and cable access than is available from commercial carriers.1 Lower cost, greater speed (up to and even surpassing one gigabit per second), and the ability to provide subsidies for residents who most need them would bring the information and commercial resources of the Internet to the vast majority of Oakland s residents, enhancing the City s economic, educational and social opportunities. DAN ECHOES THE SENTI- MENTS of Seattle Mayor Ed Murray, who said: Finding a job, getting a competitive education, participating in our democracy, or even going to work for some, requires high speed Internet access. I have seen people say online, I don t need a road to get to work, I need high speed Internet. 2 CREATING SUCH A SYSTEM IS BOTH GOOD POLICY AND GOOD ECO- NOMICS. Christopher Mitchell, the director of the non-profit research and educational organization Institute for Local Self-Reliance, stated: It may surprise people that cities in Virginia, Tennessee, and Louisiana have faster and lower cost access to the Internet than anyone in San Francisco, Seattle, or any other major city. These publicly owned networks have each created hundreds of jobs and saved millions of dollars. 3 A ADMINISTRATION WILL PROPOSE THE CREATION of the Oakland Municipal Ultra-High-Speed Communications and Internet Service (The Service), with the goal of providing universal Internet access and bandwidth on par with the best systems in the world, such as are found in Western Europe, Korea, and Japan.4 Increased and faster Internet access in Oakland will stimulate local business growth and provide 21st century Internet availability to our city government, schools, libraries, and other community organizations. 1 Mitchell, Christopher. Broadband at the Speed of Light. Institute for Local Self-Reliance/Benton Foundation. April Retrieved from: 2 Office of the Mayor. Murray: Seattle must be a national leader in identifying innovative ways to make high speed Internet available and affordable to anyone. Seattle.gov. April 9, Retrieved from: 3 Mitchell, Christopher. Broadband at the Speed of Light. Institute for Local Self-Reliance/Benton Foundation. April Retrieved from: 4 Smith, Gerry. Internet Speed in United States Lags Behind Many Countries, Highlighting Global Digital Divide. The Huffington Post. September 5, Retrieved from:

3 Benefits of High-Speed Municipal Internet AVERAGE INTERNET CONNECTION SPEED BY COUNTRY Source: Akamai 2009 Ave. Connection Speed -Mbps South Korea Japan Hong Kong Sweden Romania Switzerland Netherlands Denmark Czech Republic Belgium United States Global THE SERVICE WILL: Provide robust, ultra-high-speed broadband service to local businesses and the broader community. Cities like Chattanooga have shown that the investment in a well-designed broadband infrastructure pays off for the local economic and social community.5 The United States as a whole is seriously deficient when it comes to high-speed Internet,6 and the longer this continues, the less competitive we will become as a nation. Writing of existing gigabit Internet services, the New York Times notes: The systems are the leading edge of a push for ever-faster Internet and telecommunications infrastructure in a country that badly lags behind much of the world in the speed and costs of Web connections. Telecommunications specialists say that if the United States does not keep its networks advancing with those in the rest of the world, innovation, business, education and a host of other pursuits could suffer.7 5 Fung, Brian. How Chattanooga beat Google Fiber by half a decade., The Switch. September 17, Retrieved from: 6 Smith, Gerry. Internet Speed in United States Lags Behind Many Countries, Highlighting Global Digital Divide. The Huffington Post. September 5, Retrieved from: 7 Wyatt, Edward. Fast Internet is Chattanooga s New Locomotive. The New York Times. February 3, Retrieved from:

4 Provide economic stimulus and direct jobs. This new infrastructure will encourage and stimulate local enterprises. By providing affordable Internet access at the highest speeds available anywhere in the world, Oakland will increase its attractiveness to entrepreneurs and start-up businesses, creating new jobs and the foundation for long-term high-wage employment in the city. In addition, the Service will usher in new high-wage, skilled jobs both while it is being created and after it begins operations. Save public dollars by replacing all leased lines with publicly owned and maintained lines. The City of Oakland will save money as soon as the system is operational by no longer having to pay commercial carriers for service. There will be no lasting expense to the city. By providing The Service at reasonable cost to businesses and homes, Oakland will generate sufficient funds to recover the expense of the project and sustain its operations. Capital investment in broadband infrastructure quickly pays for itself. The Fiber Optic Network project of Santa Monica, California provides an example: The first $530,000 investment in fiber infrastructure ultimately resulted in an ongoing savings of $700,000 per year. As part of their long term strategy, the city reinvested those savings in expanding the network. Over the past ten years, the network has expanded to offer 100 Mbps to 10 Gbps to area businesses as well as free Wi-Fi to the public in many areas.8 Ensure that all Oakland citizens have access to a reliable Internet connection. National providers seek profit, and therefore pick and choose neighborhoods to maximize their financial gain. A public Internet service provider has the ultimate objective of connecting everyone in the community to the digital world. Social and economic justice demands equality of opportunity. Universal access is central to Dan Siegel s vision of Oakland for the coming decades. To this end, The Service will be provided free or with subsidy to those in economic need. Provide 21st century Internet connections for all Oakland schools. Education in the contemporary world requires ready access to the full library of information that is the Internet. We need to teach our children how to access appropriate online content and how to use the Internet as a research tool. According to recent research by the Pew Research Internet Project: Teachers of the lowest income students are the least likely to say their students have sufficient access to the digital tools they need, both in school and at home. In terms of community type, teachers in urban areas are the least likely to say their students have sufficient access to digital tools in school.9 We can help change that. 8 Gonzalez, Lisa. Santa Monica City Net: An Incremental Approach to Building a Fiber Optic Network. Institute for Local Self-Reliance. March 5, Retrieved from: 9 Pew Research. How Teachers are Using Technology at Home and in Their Classrooms. February 28, Retrieved from:

5 Next Steps CREATING OAKLAND S SYSTEM WILL TAKE PLANNING, time, and financing. A long-term outlook is necessary, along with a willingness to believe in and invest in Oakland s future. Chattanooga developed a ten-year plan for its system, which was fortuitously implemented in six years with federal grants from the 2009 stimulus program. The project was financed with approximately $200,000,000 in revenue bonds.10 Oakland will have to accomplish the following in order to realize its goal of creating municipal Internet service for the City: Create a plan to extend the reach of fiber-optic cable throughout the city. Get approval of a bond measure or similar financing from the people of Oakland, and determine if additional sources of funding can be found. Overcome the inevitable legal challenges, similar to what other cities have faced - and beaten - from existing for-profit cable companies and Internet Service Providers. Create the agency that will install and ultimately run the system. This agency will then: 0 Lay the backbone cable and create other necessary infrastructure. 0 Sign up customers, install FTTH service (Fiber To The Home), and commence service. Dan Siegel is committed to developing the Oakland Municipal Ultra High-Speed Communications and Internet Service. DAN IS UP TO THE CHALLENGE OF CREATING and executing a comprehensive plan to develop the Oakland Municipal Ultra High-Speed Communications and Internet Service. As a result, Oakland will enter the third decade of the 21st century with one of the most technologically advanced and universally available communications infrastructure and Internet access portals in the United States. 10 Details of how three cities, Chattanooga, Bristol, Virginia, and Lafeyette, Louisiana developed their municipal high-speed Internet and cable systems can be found in Broadband at the Speed of Light, cited earlier, an in-depth examination of the planning, difficulties and ultimate success of three such services.

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